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SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 1892
103RD GENERAL ASSEMBL Y
5059H.02C JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 137.122, RSMo, and to enact in lieu thereof one new section relating to
property taxes.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 137.122, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 137.122, to read as follows:
137.122. 1. As used in this section, the following terms mean:
2 (1) "Business personal property", tangible personal property which is used in a trade
3 or business or used for production of income and which has a determinable life of longer than
4 one year except that supplies used by a business shall also be considered business personal
5 property , but shall not include livestock, farm machinery , grain and other agricultural crops in
6 an unmanufactured condition, property subject to the motor vehicle registration provisions of
7 chapter 301, property assessed under section 137.078, the property of rural electric
8 cooperatives under chapter 394, or property assessed by the state tax commission under
9 chapters 151, 153, and 155, section 137.022, and sections 137.1000 to 137.1030;
10 (2) "Class life", the class life of property as set out in the federal Modified
11 Accelerated Cost Recovery System life tables or their successors under the Internal Revenue
12 Code as amended;
13 (3) "Economic or functional obsolescence", a loss in value of personal property above
14 and beyond physical deterioration and age of the property . Such loss may be the result of
15 economic or functional obsolescence or both;
16 (4) "Original cost", the price the current owner , the taxpayer , paid for the item without
17 freight, installation, or sales or use tax. In the case of acquisition of items of personal
18 property as part of an acquisition of an entity , the original cost shall be the historical cost of
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
19 those assets remaining in place and in use and the placed-in-service date shall be the date of
20 acquisition by the entity being acquired;
21 (5) "Placed in service", property is placed in service when it is ready and available for
22 a specific use, whether in a business activity , an income-producing activity , a tax-exempt
23 activity , or a personal activity . Even if the property is not being used, the property is in
24 service when it is ready and available for its specific use;
25 (6) "Recovery period", the period over which the original cost of depreciable tangible
26 personal property shall be depreciated for property tax purposes and shall be the same as the
27 recovery period allowed for such property under the Internal Revenue Code.
28 2. T o establish uniformity in the assessment of depreciable tangible personal property ,
29 each assessor shall use the standardized schedule of depreciation in this section to determine
30 the assessed valuation of depreciable tangible personal property for the purpose of estimating
31 the value of such property subject to taxation under this chapter .
32 3. For purposes of this section, and to estimate the value of depreciable tangible
33 personal property for mass appraisal purposes, each assessor shall value depreciable tangible
34 personal property by applying the class life and recovery period to the original cost of the
35 property according to the following depreciation schedule. The percentage shown for the first
36 year shall be the percentage of the original cost used for January first of the year following the
37 year of acquisition of the property , and the percentage shown for each succeeding year shall
38 be the percentage of the original cost used for January first of the respective succeeding year
39 as follows:
40 Y ear Recovery Period in Y ears
41 3 5 7 10 15 20
42 1 75.00 85.00 89.29 92.50 95.00 96.25
43 2 37.50 59.50 70.16 78.62 85.50 89.03
44 3 12.50 41.65 55.13 66.83 76.95 82.35
45 4 5.00 24.99 42.88 56.81 69.25 76.18
46 5 10.00 30.63 48.07 62.32 70.46
47 6 18.38 39.33 56.09 65.18
48 7 10.00 30.59 50.19 60.29
49 8 21.85 44.29 55.77
50 9 15.00 38.38 51.31
51 10 32.48 46.85
52 1 1 26.57 42.38
53 12 20.67 37.92
54 13 15.00 33.46
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55 14 29.00
56 15 24.54
57 16 20.08
58 17 20.00
59
60 Depreciable tangible personal property in all recovery periods shall continue in subsequent
61 years to have the depreciation factor last listed in the appropriate column so long as it is
62 owned or held by the taxpayer . The state tax commission shall study and analyze the values
63 established by this method of assessment and in every odd-numbered year make
6 4 recommendations to the joint committee on tax policy pertaining to any changes in this
65 methodology , if any , that are warranted.
66 4. Such estimate of value determined under this section shall be presumed to be
67 correct for the purpose of determining the true value in money of the depreciable tangible
68 personal property , but such estimation may be disproved by a taxpayer by substantial and
69 persuasive evidence of the true value in money under any method determined by the state tax
70 commission to be correct, including, but not limited to, an appraisal of the tangible personal
71 property specifically utilizing generally accepted appraisal techniques, and contained in a
72 narrative appraisal report in accordance with the Uniform Standards of Professional Appraisal
73 Practice or by proof of economic or functional obsolescence or evidence of excessive
74 physical deterioration. For purposes of appeal of the provisions of this section, the salvage or
75 scrap value of depreciable tangible personal property may only be considered if the property
76 is not in use as of the assessment date.
77 5. This section shall not apply to business personal property placed in service before
78 January 2, 2006. Nothing in this section shall create a presumption as to the proper method of
79 determining the assessed valuation of business personal property placed in service before
80 January 2, 2006.
81 6. The provisions of this section are not intended to modify the definition of tangible
82 personal property as defined in section 137.010.
83 7. (1) Beginning January 1, 2027, this section shall apply to all rea l pr operty ,
84 placed in service at any time, that is stationary pr operty used for transportation or
85 storage of liquid and gaseous prod ucts, including water , sewage, and natural gas that is
86 not pro pane or LP gas, but not including petr oleum pr oducts.
87 (2) T o estimate the value of the re al pr operty described in this subsection, each
88 assessor shall value such prop erty by applying a twenty-year r ecovery period to the
89 original cost of the pr operty according to the twenty-year depr eciation schedule set
90 forth in subsection 3 of this section. Notwithstanding subsection 5 of this section, the
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91 pr esumption as to the prop er method of determining the assessed value of such pr operty
92 shall apply rega rdless of when such pro perty was placed in service.
93 (3) Each taxpayer owning r eal pr operty described in this subsection shall
94 pr ovide to an assessor , on or before May first of the applicable tax year , the original cost
95 and year placed in service of such prop erty summarized in a format that is substantially
96 similar to the twenty-year rea l pr operty repo rting and valuation forms contained in
97 section 7.4 of the state tax commission assessor manual, r evision date March 4, 2025, or
98 any other rev ision adopted by the state tax commission ther eafter . Upon the written
99 r equest of the assessor , such information shall be pr ovided for each taxing district
100 within the assessor's jurisdiction. If request ed by the taxpayer , the assessor shall
101 pr ovide to the taxpayer geographic information system maps in r eadable layers on
102 which a taxpayer may pr ovide the information in this subsection. The taxpayer shall
103 certify under penalty of perjury that the information pr ovided to the assessor under this
104 subsection is accurate to the best of the taxpayer's knowledge. All information pr ovided
105 to an assessor under this subsection shall be consider ed pr oprietary information and
106 shall be accessible only to the assessor and the assessor's staff for internal use only .
✔
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